We charge 20% of what we save you. See the difference on $100,000.
In most work, the price does not decide whether the job can be done. Debt settlement is different. The money you have is what settles the accounts. Every dollar that goes to a fee is a dollar that cannot go to the next creditor.
That is why a long program and a high fee compound each other. The accounts sit unpaid while the fee is being earned, and unpaid accounts are the ones that can reach an attorney. A 2020 study commissioned by the debt-settlement industry found that 22% of enrolled consumers settled all of their accounts within 48 months. That is a dismal completion rate, and the high fees these companies charge is one reason for it.
One fee is a percentage of the balance you enroll. The other is a percentage of what the settlement saves you.
A fee on the enrolled balance does not change if the settlement is good or bad. Most companies charge 20–25% of what you owe. On $100,000, 25% is $25,000 whether the accounts settle for $60,000 or $30,000.
Our fee is 20% of the savings, and only on a settlement you accept. There is no upfront fee and no monthly admin fee. You pay the creditors directly. The only money paid to us is the fee. See how the service works.
| Accounts settle for | 20% of the savings | 25% of the balance |
|---|---|---|
| 60%, or $60,000 | $8,000 | $25,000 |
| 50%, or $50,000 | $10,000 | $25,000 |
| 40%, or $40,000 | $12,000 | $25,000 |
| 30%, or $30,000 | $14,000 | $25,000 |
Based on $100,000 enrolled. These are fee illustrations, not settlement quotes. A company charging 20% of the balance would collect $20,000 on every row.
Federal telemarketing rules bar a for-profit debt relief company from collecting a settlement fee before a debt is settled and you have made at least one payment under that agreement. A company that wants a large fee before any account is settled is not following that rule.
An offer you reject does not create a fee. Some companies also charge a setup fee or a monthly account fee on top of the percentage. Ask for both numbers before you enroll. The percentage may not be the whole cost. See more fee questions in the FAQ.
If your credit is still intact and you have a positive net worth, add the settlement, the fee, and the tax before you decide. On a smaller balance, those three can eat the savings. The question is whether the reduction is worth the credit damage. For a lot of people who are still current and can remain that way, it is not. See when credit counseling may fit instead.
If the credit is not damaged yet and you would owe tax on the forgiven amount, settlement usually starts to make sense only with a large unsecured balance, generally around $50,000 or more.
If you are already behind, the damage is done. Settling can make sense at a smaller balance, provided you can fund the accounts quickly. If you cannot settle yet, a payment plan on the charged-off accounts is the other option. Details are on the services page.
Most charge 20–25% of the enrolled balance. We charge 20% of the savings on a settlement you accept. There is no upfront fee. You pay the creditors directly. See the full fee structure.
No. The fee is earned only on a settlement you accept. An offer you turn down does not create a fee.
They can be. Forgiven debt is generally taxable. It can be excluded if the debt is discharged in bankruptcy, or to the extent you are insolvent. See more on the insolvency exclusion.
Read our free 4-part educational series, or have Jared look over your accounts with you.